Modern payments solutions and card programmes: should you build or buy?

For banks, fintechs, and businesses alike entering today’s payments scene, one of such dilemmas is on everyone’s mind when developing a new payment service: should I build it in-house or buy it from an external provider? Let’s be real; it’s a tough call. Money, time, and crucial resources are all at stake. Plus, there is no magic answer that fits everybody.

Putting this in context – with the ups and downs of the economy lately have made fintech companies prioritise sustainable growth, especially after a period of bold risk-taking and generous funding. Even though new players are emerging, the fintech industry has grown up. In the card processing scene, we’re seeing more and more businesses clamouring to be part of digital payments, with a bigger focus on flexibility and customer-centricity. For banks, fintechs, businesses, and architects entering the world of payment processing and issuing, there are exciting opportunities to grow and learn from those who’ve gone before. Whether starting fresh with a new card program or giving an old one a modernised makeover, businesses must figure out the best way to meet their needs and goals – whether to build from scratch, buy a solution or partner with a more modular approach.

That’s why we at Enfuce decided to create a platform for open discussion on this debated topic; we started out by surveying 8 fintech leaders, whom we refer to as architects in this content, from some of the most cutting-edge companies across Europe – to get their expert insights and real-life experiences on navigating ‘what to build and what to buy’. What we found is that when it comes to launching a new card programme the build and buy debate is incredibly nuanced, with a whole mix of factors, and new solutions, coming into play.

Our architects have worked or advised on some of the most innovative card payment programmes in financial services which is why we gathered them to debate this difficult and multi-faceted question in this essential guide to the build or buy conundrum. Across the videos and content in this series the architects walk you through their opinions, their learnings, and offer their guidance so that you know what to look for when you’re faced with the choice of build or buy, or something in between.

Meet the architects

From this discussion we have built out a content series which is a combination of a guide, and accompanying films, plus video case stories and shorter blog articles on specific topics that were core threads in the discussions. So take a well-earned break and dip into each piece of content and corresponding film.

Key insights from these conversations include:

• The importance of forging a strong foundation with a technology partner from the get-go.
• The time, resources and expertise required for custom program builds and maintenance.
• The regulatory and compliance requirements involved.
• The faster, more affordable implementation of purchasing an existing system.
• The need for scalability, flexibility and modularity in all systems being considered.
• The importance of relationships and trust within the team that is created.
• Why a modular approach is a viable option for many builders.
• Successful card program migration is possible when done with the right partner
• The future is filled with opportunity – if you’re brave enough.

Balancing the build or buy dilemma: why modular solutions are the future

Across the content we investigated the different options available to architects, including their advantages and challenges. For those building a custom solution, the total control this option offers are very attractive. But the lengthy build time and significant cost can make architects a little reticent.

On the other hand, while buying a ready-made solution means you can be up and running faster and have ongoing support, it might also limit how much you can customise.

Additional considerations are the ever-changing regulatory demands, technological trends and customer expectations, which make the decision to build, buy (or partner) a balancing act between short-term wins and long-term goals. Throughout the guide and the in-depth interviews conducted, we see a smart middle-ground emerging – that of the transformational power of modular solutions and partnerships. With the best attributes of both the build and the buy options, as well as added benefits like flexibility, support and expertise, the modular partnership approach offers a very interesting, evolved route.

By weighing up all the factors explained in the guide and listening to the architects who have had first-hand experience making this decision, we hope what you’re about to read and watch helps you feel confident and ready to make the right call for your business.

Download the Builders guide to strangely satisfying card experience here.